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00:00THAT'S A BLOOMBERG BUSINESS FLASH. FRANCINE: THIS IS WHAT I PICKED UP FOR MY MORNING MUST-READ. WE KNOW THERESA MAY IS IN SWITZERLAND FOR HER ANNUAL HOLIDAY,A ND THIS IS WHAT THE SUNDAY TIME EDITORS HAVE BEEN WRITING. THIS IS AFTER THEY ALSO GOT SOURCES AT WHITEHALL OVER THE LAST COUPLE WEEKS TO SAY, ACTUALLY, BREXIT WON'T HAPPEN UNTIL 2019. IN THEIR COLUMN THIS MORNING, "HOW TO MAKE GOOD ON HER PROMISE IS DOUBTLESS HIGH ON THIS IS MAY'S TO DO LIST." THE COUNTRY STILL HAS CONFIDENCE IN HER ABILITY TO KEEP A LEVEL HEAD; SO FAR SHE HAS HARDLY PUT A FOOT WRONG. TWO THINGS. IT IS TRUE, SHE HAS REALLY BEEN A SAFE PAIR OF HANDS, BUT WE HAVEN'T NEGOTIATED YET. AND IT IS QUITE INTERESTING THAT SHE IS THE SECOND PRIME MINISTER EVER TO HOLD IN SWITZERLAND -- TOM: I ASSUME SHE, LIKE YOU, ARE AT THE PIANO BAR. I ASSUME SHE WENT TO DAVOS -- FRANCINE: SHE HIKES, SHE DOESN'T HANG OUT. TOM:I HIKE, TOO. WHAT HAPPENS IN SEPTEMBER? IS THERE A JUMPOFF FOR THIS NEW GOVERNMENT? IS THERE A CATALYST IN SEPTEMBER? FRANCINE: WE DON'T KNOW, AND THIS IS ONE OF THE ISSUES. WE DON'T KNOW HOW MINISTERS ARE GOING TO APPROACH THIS. THERESA MAY HAS REPEATEDLY SAID BREXIT IS BREXIT, BUT HAS NOT SAID WHEN SHE WILL INVOKE IT. SEPTEMBER, NOTHING REALLY HAPPENED. WE DON'T KNOW WHETHER WE WILL FIND OUT ABOUT THE NEGOTIATING TACTICS ARE NOT. WHAT'S CLEAR IS THAT THERE WILL BE A SUMMIT. THE EU WILL BE PREPARING GROUND, EVEN IF WE BELIEVE THE SUNDAY TIMES SAYING THAT THE MINISTER IS ON OUR SIDE, THEY AREN'T EVEN READY TO THINK ABOUT YOU. >> WE ARE IN THE MIDDLE OF A STALEMATE. THE EU MIGHT BEGIN A CONTINGENCY PLANS, BUT IT CAN'T PLAN FOR THE EXIT UNTIL ARTICLE 50 IS INVOKED. THERE IS NO LEGAL BASIS FOR ACTING ON ANY PRELIMINARY DECISIONS. THIS GOVERNMENT HAS CHOSEN TO POSTPONE THE DECISION, MAYBE LATER INTO 2017. A FEW WEEKS AGO THAT WOULD HAVE DRAWN THE IRE OF EUROPEAN LEADERS WHO WANTED BRITAIN TO GET ON WITH IT. I THINK THEY ARE NOW BOTH ON HOLIDAY BUT ARE ALSO LIKELY TO BE CONSUMED BY OTHER THINGS. THEY BEGIN TO REALIZE THAT BREXIT MEANS SOMETHING FOR THE U.K., BUT NOT VERY MUCH FOR THE EU. THEY PROBABLY HAVE MORE PATIENCE THAN WE THOUGHT THEY MIGHT HAVE HAD BACK IN LATE JUNE. TOM: THE MARKETS ARE GOING TO TELL HER WHAT TO DO; THAT IS MY EXPERIENCE AS POLITICIANS MEANDER ALONG AND ALL OF A SUDDEN THE MARKETS SPEAK. HE WILL SHOW THIS CHART A LOT. THIS IS STERLING 54 DAYS ON FOR BREXIT. I'M SORRY, LARRY, THAT CHART TELLS ME WE ARE GOING THROUGH 129 TO A WEAKER 128. CAN THE CURRENCY BE THE CATALYST FOR ACTION BY POLITICIANS? >> WHAT THE CURRENCY IS TELLING US IS THAT INVESTORS, PARTICULARLY THOSE WHO BRING MONEY INTO PARTICIPATE IN THE U.K. ECONOMY AND ITS RELATIONSHIP TO EUROPE, ARE ON HOLD. THEY DON'T KNOW WHAT THE FUTURE LOOKS LIKE; THEY DON'T KNOW THE CONDITIONS UNDER WHICH BREXIT WILL OCCUR, MUCH LESS WHAT THE FINAL BLUEPRINT IS LIKE. GIVEN THAT THE U.K. RUNS AN EXTERNAL DEFICIT, THAT BY EXTENSION MEANS AN INSUFFICIENT CAPITAL FLOWED TO KEEP THE CURRENCY AT ITS PREVAILING VALUE. WILL THAT WEAKNESS FORCE THE END OF THERESA MAY OR ANYONE ELSE? YOU CAN'T REALLY FORCE THEIR HAND. I THINK THAT SHE IS LOOKING AT ECONOMIC WEAKNESS AND RESPONDING

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Mrs. May Must Keep Her Footing on the Path to Brexit

On "Morning Must Read," Bloomberg’s Francine Lacqua recaps the op-ed pieces and analyst notes that provide insight into today’s headlines. GAM Group Chief Economist Larry Hatheway also speaks on "Bloomberg Surveillance." (Source: Bloomberg)

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